Re: FHA..... Disputed Accounts & Collections. UPDATE!!!

Thank you for your contribution.Can you explain some more about the roll back the proposed dispute accounts rule? We would greatly appreciate it.

old rule:

If the credit report reveals that the borrower isdisputing any credit accounts or public records,the mortgage application must be referred to aDE underwriter for review.

proposed rule:

If the Automated Underwriting System using the TOTALMortgage Scorecard rates the mortgage loan application as anAccept, the mortgage application will no longer be referred to aDE underwriter for review due to disputed accounts, as long asthese accounts meet both of the following conditions:The total outstanding balance of all disputed creditaccounts or collections are less than $1,000,andDisputed credit accounts or collections are aged twoyears from date of last activity as indicated on the mostrecent credit report.

they rescinded the proposed rule.

not it is back to underwriter discretion.

my internal guidelines say that the disputes have to be 'resolved'

many banks are the same.

best advice? => get all of the disputes resolved before you get your credit pulled. <= this gives us a valid credit score.

also.... the bureaus might leave a 'statement' on the account saying that you dispute the acccount. this doesnt mean that the account is actually in dispute.... it means that you dont agree and are saying so with a statement.

bad news about that: underwriter cannot tell if it is an ongoing dispute or a statement.... so you will have to get the statemeent removed as well.

best practice with regards to disputes: contact each bureau and have them remove ALL DISPUTES and STATEMENTS OF DISPUTES from the reports.

Re: FHA..... Disputed Accounts & Collections. UPDATE!!!

I have 2 old car repossessions that are 3-5 years old. I have been current on all bills paid in the past 2 years a long with the car note. EX: 628, EQ;609, and TR: 621. Do you know if you can get a loan with these showing as having a balance?

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IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.